AMA Group posts an operating loss of $52.5 million

AMA recorded a loss of $52.435 million in its first-half 2022 results. This follows a loss of nearly $100 million for 2020. Its share price fell to 32 cents after the earnings release and , again, no dividends to shareholders were paid. An EBITDAI profit of $4.228 million was recorded compared to $65.158 million in 1H21.

CEO Carl Bizon cited falling traffic volumes, blockages and staff welfare costs among the reasons for the loss during a webinar presentation. Operating profit decreased by 839% compared to the same period last year (a loss of $52,435 million compared to a profit of $7.098 million).

The director’s report said AMA had experienced its lowest total repair volumes in a six-month period since the start of the pandemic at the start of calendar year 2020. The report highlights the payment of 72.5 million dollars of debt on the company’s $150 million capital raise last year. .

Bizon said the group undertook a thorough review of its network and shut down four sites and “hibernated” an undisclosed number, resulting in impairments of $16.683 million. The report indicates that as of December 31, 2021, the Group had 173 sites.

Bizon also referenced rising raw material and parts costs and talked about seeking “covid-contemporary” pricing deals with insurers. ACM’s entire vehicle wreck deal with Suncorp has been canceled, meaning the company will have to compete for Suncorp wrecks at auction.

Bizon described a number of initiatives to increase profits and retain staff in the future. The group has created a consumables business to leverage its overseas purchasing power which it plans to offer to the wider industry.

Parts are another key focus in an effort to increase and improve the supply of parallel imports and recycled mechanical and collision parts. The supply side of the business saw an increase in revenue of approximately $2.6 million and recorded a loss of $3.83 million. The recent addition of an experienced, dedicated senior procurement resource is beginning to deliver volume-based benefits that the report says are expected to benefit the company by $10 million per year.

The group has set up a claims management services company to add value to customers and will also target private works. Emphasis is placed on promoting the AMA group as a good place to work and the company has drawn up a code of conduct and is launching an employee share ownership plan.

The presentation said the truck repair division “maintained positive momentum during the Covid-19 period.” Revenue increased to $27.84 million from $25.41 million in the same period last year, although profit fell from $4.67 million in HY21 to $3.54 million in 1S22.

Regarding acquisition, Bizon said those plans were put on hold during the lockdown, but a number of acquisition targets have been identified and are being pursued in both the collision repair and industries. associated.

You can read the full report here.